SB115 Summary

• Reduces individual income tax rates for tax years beginning January 1, 2019, lowering the lowest bracket from 0.9% to 0.75% and reducing rates in the under-$21,000 income bracket from 0.9% to 0%, 2.4% to 2%, 3.4% to 3%, and 4.4% to 3.4%.

• Creates the Arkansas Tax Reform and Relief Legislative Task Force consisting of 16 General Assembly members to examine and recommend tax law reforms to modernize the tax code, increase business competitiveness, and create jobs.

• Task force must file preliminary report by December 1, 2017 and final report by September 1, 2018 with recommendations for the 2019 legislative session, and expires December 31, 2018.

• Declares an emergency clause stating Arkansas income tax rates are too high compared to surrounding states and prevent competitiveness, making this act immediately necessary.

• Bill approved February 1, 2017.